As was quite evident with the NFC chip in the Google Nexus S , Google was planning something big with Mobile Payments. The Wall Street Journal reported that Google has joined hands with MasterCard and Citigroup for setting up a mobile payment system to turn Android smartphones into e-Wallets. However, in this deal Google won’t be getting any monetary cut from both partners whenever Google’s phone is being used. Read on to know how it would work.
How it would work ?
NFC or Near Field Communication is a short range wireless technology that will let the client device (Android Smartphones) behave like a contact-less electronic card. For that Google, MasterCard and Citigroup have partnered with credit-card reader maker VeriFone Systems which also makes contact-less readers. VeriFone will introduce Contact-less readers that will let the Citigroup card holders to make purchases by waving or tapping their Android smartphones in front of these readers. Google’s even patented a system that places its digital shopping services at the core of some of the transactions–acting as a virtual shopping cart and coordinating delivery.
Is it More secure than Credit/Debit cards ?
In a word , yes. Having your payment system on your phone actually makes it more secure than carrying it around on a piece of plastic, as it provides a greater level of authentication. Furthermore, rather than imprinting your account number on a easily readable card, an NFC-enabled device keeps it encrypted and password-protected inside the phone.
Other options ?
Apart from Google, Apple and BlackBerry too are expected to join the NFC mobile payment bandwagon. The next Apple iPhone 5 is heavily anticipated to carry the NFC chip. The Blackberry roadmap also features use of NFC technology.
At present the deal is being finalized and the software side of things will be available in a gingerbread release, assuming you have a NFC enabled device.
For now we would have to wait to pay for that morning Starbucks with our phones.
Source : WSJ